Today, we are announcing that Peter Chernin, our President and
COO, will not be renewing his employment contract. Peter will be
taking up the opportunity to start a new motion picture and
television production venture with Fox.

Attached is the press release.

Many of us who have worked with Peter over his 20 years with the
company can attest to his leadership, his diligence, and his
wisdom. I can also testify to Peter’s friendship, dedication, and
honesty. He has been a close colleague and an ally to me for many
years.

While Peter has distinguished himself at News Corp, he has also,
increasingly and tirelessly, circled the globe in support of
Malaria No More, which has achieved nothing short of remarkable
results. Let us all wish him the best of luck, and the
greatest success, as he embarks on this new chapter of his
career, both as a professional and as a role model for an
executive who gives back.

As you all know the downturn we are operating in is more severe
and global than anything we have seen before. No company is
immune to its effects. I want to take this opportunity, today, to
write to you about how we will manage such an important
leadership transition, and why I am convinced that today our
company is not only well-positioned financially and
competitively, but is on the cusp of a new phase of growth.
Remember, we began priming ourselves for a weakening economy over
a year ago. We have managed expenses and capital expenditure
prudently, and strengthened our balance sheet. Following the
partial sale of NDS, we will have over five billion dollars in
cash, and this year we should exceed $3.5 billion in adjusted
operating income.

In the past, we have met downturns with vigor, often departing
from the herd. We have emerged much stronger.

Achieving our ambitions will require change and renewal. So
throughout 2009, I will continue to work closely with all of our
companies to make sure that we are organized and resourced in the
best way to take advantage of this extraordinary point in time.
We will press our advantages and invest in our great
franchises. And, of course, we will keep our eyes on big
prizes, some of which may arise only once in a generation.

Across News Corp. we have a broad and deep reservoir of extremely
able executives.

Over the years we have accomplished great things. People
understand, and have acknowledged, our entrepreneurial spirit as
well as our doggedness; our willingness to take risks, our
contrarian investment style; and our commitment to long-term
development and shareholder value.

Many of you have told me how hungry you are to work more closely
across our companies. Many of us have been frustrated by the
things that can get in the way of that. From systems that don’t
talk to each other to incentives that struggle to capture the
opportunity and aspiration of our total group. These
obstacles are obvious to us all. There will be a streamlined
management structure between our Los Angeles based business units
and the rest of the company. Peter and I will be
communicating more on this over the next few months. For the time
being, of course, the talented executive team at the Fox Group
will continue to report to Peter.

Now is also an ideal opportunity to streamline and enhance many
of the corporate and administrative functions of the
business. There will be cost savings as a result, but the
more important aim is to be leaner so that we can better leverage
our collective talent and expertise. For instance, and
beginning immediately, H.R. functions throughout all our units
will report to Beryl Cook in New York as well as their division
heads. Beryl reports directly to me.

We have worked hard to develop and advance the best among us. The
renewal of great companies begins within themselves.
Pursuing an edge through superior talent is a priority.
This will be a key focus for us in 2009.

In the coming months, I will be reaching out to you with new
questions, and with new plans.

We are in the midst of a phase of history in which nations will
be redefined and their futures fundamentally altered. Many
people will be under extreme pressure and many companies mortally
wounded. Our competitors will be sorely tempted to
take the easy beat, to reduce quality in the search for immediate
dividends.

Let me be very clear about our company: where others might step
back from their commitment to their viewers, their users, readers
and customers – we will renew ours.

The direction of the business now and over the next few years
will define the character of our company for decades.

We have always thrived on change and challenge. This was
true when we began building a newspaper business in Australia.
Just as it was when we created BSkyB and developed a fourth US
network, the Fox Network, when conventional wisdom dictated that
there was room for only three players. It was true when we
launched Star, now the leading network in India, and the Fox News
Network and Sky Italia.

The best things we have done, and there are many examples, have
defied conventional wisdom, often in the teeth of fierce
opposition and near universal disbelief in our
capabilities.

Over the past 12 months I have spent time with you in India and
China, in Italy and the UK and many other countries. We have
brought Dow Jones into the fold, extended our influence in
Europe, and been at the center of reporting the arrival of a new
American president and the impact of the global financial crisis.
We’ve told extraordinary stories, in theaters around the world
and on page and screen from Mumbai to Malibu.

Our own international reach is a profound strength. We have
intelligent, creative and highly motivated colleagues around the
world who are ambitious for themselves, for their countries, for
our customers and for our company. The result is that where
others simply seek distribution, we are building durable
businesses at scale. We are also creating large franchises
in marketplaces that will grow at a faster pace in the coming
years and, increasingly, our businesses are based on direct
customer relationships..

We must always be acutely aware of our responsibility to
shareholders, and to create real value for them. This is entirely
consistent with, and in many cases inseparable from, the enormous
social value we have created over the decades. We provide
information and entertainment to billions, enabling them to
improve their lives and those of their families. There is
genuine value in the values of our company – these are values
that are even more important in a world confronting so much
today

We believe in communities. The very idea of community is broad,
and encompasses interests that cross national, ethnic and
demographic borders. We are all members of many different
communities, whether it be of people who are passionate about
Hollywood films, or care about living in a healthy environment,
or use a local jobs website, or trade commodities in Chicago and
London, relish soccer whether in China or Nigeria. These
communities are our communities, as they read, evaluate and
create everyday

That is why, most of all, I believe in the community that is our
company.

I wanted to let you know that I have decided to leave News
Corporation when my contract expires on June 30th.

This is not a decision that came easily, but after more than 12
years in my current job, 20 years at Newscorp, and 30 years of
corporate life, I am ready for new entrepreneurial
challenges. I would not be making this difficult decision
if I were not confident in the superb management team we have at
Fox and in the visionary leadership of Rupert Murdoch. I
have worked closely with Rupert every day, and I know he shares
my belief that Fox executives are the best in the business.

I want to thank Rupert for his remarkable support, encouragement
and friendship over the years. No company in our industry
can match News Corporation's track record of creating
opportunities for employees and there is no better example of
that than the opportunities Rupert has given me over the
years.

I also want to thank all of you for the privilege of working side
by side with such a talented and deeply principled group of
colleagues. I am not only deeply proud of your
achievements, but even prouder of the character and integrity of
the company.
Over the next several months, Rupert and I will work closely to
make sure this is a smooth transition for everyone. Thank
you for the dedication and enthusiasm that you have always shown
and I know will continue to show as the company moves forward to
even greater heights.